A greener motorized rickshaw could be the next ride for the emerging market poor

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In crowded emerging markets like China and India, rickshaws, especially the motorized kind, have gotten a bad rap with governments fretting about congestion and smog. But there is hope that a greener motorized rickshaw could turn official opinions, since the primitive vehicle often provides needed jobs for the poor and a cheap form of transport for small businesses.

As motorized rickshaws (also called “auto-rickshaws” or “tuk tuks”) have become more popular, they have assumed an integral role in the transportation systems of emerging economies. They’ve been introduced in South Africa, Egypt,Kenya,and France in recent years, where they have become a major (and at times, controversial) alternative to more expensive full-sized taxis. They’ve also been in use for years all over Asia, including in China, Thailand, Vietnam, and India, where they handle a significant portion of local commuter traffic.

For example, in India, since bus routes, trains and full-size taxis can only handle so many of the passenger miles required to keep the country’s urban centers connected to their labor force, tuk tuks take up the slack. While a bus line may take a worker most of the way, often the “last mile” of the commute, from the bus stop home, necessitates a trip in a tuk tuk. Auto-rickshaws perform up to 20% of the 229 million motorized trips taken every day in Indian cities. The total number of trips is expected to increase to around 482 million by 2031. Altogether, in Asia, there are 200 million two and three-wheeled vehicles on the road. Current projections estimate that number will reach 550 million by 2035.

Growing populations and more vehicles mean even more trips, and that makes the pollution from these vehicles increasingly problematic. Too many auto-rickshaws feature two-stroke engines, which burn oil and lack catalytic converters, making them up to 13 times more polluting than low-emission four-stroke and compressed natural gas (CNG) models.

Fortunately, there are even cleaner options than CNG or four-stroke upgrades: electric, hybrid, and solar tuk tuks.

Recently, the Mövenpick Resort and Spa in Thailand introduced electric tuktuks at their Karon Beach location in Phuket, replacing their entire fleet of gasoline tukuks. The resort touted the initiative on its Facebook page as its latest sustainability initiative as a Green Globe certified resort. Dubai’s Anantara Palm Resort and Spa introduced electronic tuk tuks as well with similar fanfare, and tour groups from Bonaireto Amsterdam feature electric tuk tuk service in hopes of grabbing the attention of “green” tourists.

But for now, adopting greener rickshaws is an expensive endeavor, for both governments and rickshaw owners. Electric tuk tuks can cost between $3,000 and $5,000 more than conventional models—which go for as little as $2,000. Many drivers don’t own their own tuk tuks, and it’s an open question whether taxi stand bosses would be willing to invest in the expensive technology upfront, even if it means significant gas savings in the long-term.

India, which implemented a successful ban on two-stroke engines and a switch to natural gas versions in the 1990s, is a model for top-down government bans. The San Fernando initiative illustrates what can be accomplished with incentive programs: local Filipino officials doled out medical care and loan swaps for old engines, which incentivized all its drivers to replace every two-stroke vehicle on the road in just 11 years.